Flutter Entertainment issues profit warning as American Football fans go on winning run

Flutter Entertainment has issued a profits warning after taking a hit of $438 million (£352m/€425m) as US punters enjoyed a winning run on American football.

The parent company of Paddy Power and Sky Bet said that one match alone, the Detroit Lions' 40-34 victory over the San Francisco 49ers on December 30, cost them $74m.

Flutter, which runs the FanDuel brand in the United States, said it had experienced "very unfavourable" US sports results in November and December, primarily on NFL accumulators and bet builders.

It said the 2024-25 NFL season had so far been the most customer friendly since the launch of online sports betting in 2018 with the highest rate of winning favourites in nearly 20 years.

The customer-friendly results generated an estimated adverse gross gaming revenue impact of $438m and estimated reductions in revenue of $390m and in adjusted earnings of $260m for the period between November 12 and the end of 2024.

As a result, Flutter said its US revenue for 2024 was now estimated to be around $370m lower than the previous guidance midpoint at $5.78 billion, while US adjusted earnings were estimated to be around $205m lower at $505m.

Flutter did say that outside the US there was "continued good momentum" in the UK and Ireland, in particular thanks to more favourable results in the Premier League, and raised estimates for revenue and adjusted earnings by one per cent and two per cent respectively.

David Brohan, gaming and leisure analyst for stockbrokers Goodbody, said the update from Flutter highlighted the "increased volatility" that comes from higher margin products such as bet builders.

Flutter moved its headquarters and primary stock market listing to New York last year.

The company retains a secondary listing in London where Flutter shares were down around two per cent at 20,110p on Wednesday morning.

Read these next:

Ian Brown to step down as Flutter UK and Ireland chief executive as part of restructuring of gambling giant 

Flutter Entertainment raises forecasts for the year despite US punters enjoying winning run on NFL 

'This is in no one's interest' - gambling giant warns of unintended consequences of tax hike 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.